It was Apple that ultimately backed out of the "acqui-hire", not the target company's CEO.

Edit: Nope, I was wrong here. I think the rest of this comment is still relevant though.

And for all we know, it may have been her investors that encouraged (demanded?) her to go the route of "selling" the employees[0]. It appears the company would be winding down and they stood to benefit by recouping some of their investment.

I can't see how she would benefit. But... who knows.

[0] Just typing the phrase "selling the employees" makes me feel icky.